XRP ($XRP) has continued to face selling pressure in the past few days, with the token’s value dropping to $0.627.
The token’s recent struggles have been linked to lingering regulatory uncertainty following the SEC’s decision to appeal Ripple Labs’ recent court victory.
Meanwhile, excitement continues to build around the XRP20 ($XRP20) presale, which has now raised over $2.7 million as it trends toward its hard cap.
$XRP Struggles for Momentum as Technicals Turn Bearish
XRP’s value has declined by 6% since Friday, with the token closing in the red for four straight days.
After a minor pump last Tuesday, the price has returned to a downward trend as the SEC’s appeal weighed on investor sentiment.
Price failed to break the critical $0.650 level, which was rejected with a long wick on Wednesday.
This has caused $XRP to create a minor support zone around $0.625, where the price has consolidated in the past 48 hours.
From a technical standpoint, $XRP is now tapping the 50-day Exponential Moving Average (EMA), often used as a proxy for a token’s medium-term trend.
Moreover, the Relative Strength Index (RSI) on the daily time frame stands at 43, signaling the token’s bearish momentum.
However, trading volumes remain robust, with CoinMarketCap data showing that over $881 million in $XRP traded hands in the past day – a 76% increase from the previous day.
Lingering Lawsuit Uncertainty Dampens Investors’ Spirits
The main driver of XRP’s recent struggles is the lingering regulatory uncertainty after the SEC announced plans to appeal the court’s ruling in Ripple’s favor.
The threat of a prolonged legal battle has dampened investor enthusiasm, leading some to exit their positions rather than face ongoing price volatility.
Until the lawsuit’s outcome is decisively resolved, either through a settlement or a rejection of the SEC’s appeal, the uncertainty around $XRP will likely persist.
This will make it difficult for $XRP to recapture the bullish momentum showcased in mid-July.
However, many crypto influencers and analysts continue to be optimistic about $XRP’s prospects.
Edo Farina, a crypto analyst with over 73,000 Twitter followers, recently tweeted about $XRP’s historical resistance in the face of uncertainty – speculating that the token will also be able to navigate the current headwinds easily.
Only time will tell whether this optimistic outlook comes to fruition, but Farina’s tweets highlight that some still see a bright future for $XRP.
Investors Flock to Limited-Time XRP20 Presale As Project Hits $2.7 Million Milestone
As XRP grapples with familiar regulatory woes, the new XRP20 token continues to gain traction by positioning itself as a “second chance” for crypto investors.
The XRP20 presale has now raised an impressive $2.7 million as it heads closer to its $3.68 million hard cap.
By leveraging investors’ nostalgia for XRP’s early days, the project has resonated with investors – priming it for a highly-anticipated DEX launch in the coming weeks.
XRP20 incorporates several valuable features, like staking rewards and a deflationary token burn, which help boost the token’s inherent value.
Moreover, the low presale price of $0.000092, 30 times cheaper than XRP’s all-time low, has also contributed to the growing buzz around the project.
This enthusiasm has spread to XRP20’s Telegram channel, which has seen remarkable growth in the past few days.
Early adopters have also highlighted XRP20’s clean smart contract audit, conducted by 0xGuard, as another factor that underscores the project’s legitimacy.
With the presale nearly 75% complete, the countdown is on for $XRP20’s open market debut.
Thus, as XRP stumbles, investors are flocking to XRP20 – suggesting an exciting few weeks lie ahead for early adopters.
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